There are now 12,400 Czech companies based in tax havens, the fewest since
2011, after a record 405 moved operations this year, the consultancy
Many tax havens have largely ceased to perform their core functions, namely securing their owners’ anonymity and tax optimization, accord to the consultancy.
A total of 157 Czech firms left the Netherlands this year and 147 left the United States. Dozens also moved their headquarters from Cyprus (36 companies), Luxembourg (32) and the British Virgin Islands (22).
Bisnode estimates that only 2.47 percent of Czech firms are now controlled from tax havens. It says destinations such as Hong Kong and the United Arab Emirates are increasingly popular.
Czech firms are expected to curb their investments this year, as a result
of the workforce shortage, and the expected slowing of the German and Czech
economies, according to a prediction released by the European Commission.
The Czech export-oriented economy is expected to feel the impact of an economic slowdown in Europe, particularly in its main export destination, Germany. Despite this the Commission predicts solid growth, driven mainly by household consumption.
Companies are expected to invest mainly into digitalization and automated technologies.
The Czech Republic’s year-on-year industrial production figures grew by 3.2 percent in May, 0.1 percent less than in the previous month, according to figures released by the Czech Statistics Office on Monday. The main drivers of growth were the automobile industry, as well as plastic and energy production. The country’s foreign trade surplus experienced a year-on-year rise of CZK 17.2 billion, reaching CZK 24.4 billion.
The Czech foreign trade surplus rose in May by 17.2 billion crowns in
annual terms, to 24.4 billion crowns, according to preliminary data
published on Monday by the Czech Statistical Office.
Exports grew year-on-year by 8.1 percent to 332.5 billion crowns and imports by 2.5 percent to 308.2 billion crowns.
The balance was positively influenced mainly by the motor vehicle sector, where exports increased by 11.5 billion crowns. At the same time, the deficit in refined petroleum products, chemicals, and oil and natural gas decreased.
The EPGC investment group owned by Czech Daniel Křetínský and Slovak
Patrik Tkáč, has submitted a public offer for the German business group
Metro. Reuters reported that EPGC had said in a press release that it was
offering amounts for shares that valued Metro at EUR 5.8 billion.
The bid is contingent on EPCG reaching sufficient shares to take control of Metro, a spokesperson for the former said.
Reuters said the investment was part of Mr. Křetínský’s strategy of diversifying his holding into the food and retail sectors. He already owns the tabloid Blesk and Sparta football club.
Prague is catching up with West European real estate markets, the daily e15 reports, citing a new survey released by PriceWaterhouseCooper and the Urban Land Institute, carried out among developers and investors. According to the 2019 report, Prague is one of the 20 most sought after cities in Europe for real estate purchases.
Turnover of the Czech Republic’s 100 largest companies last year for the
first time exceeded three trillion crowns (around 118 billion euros),
according to the Association Top 100. Meanwhile, their profits grew by 12.3
percent year-on-year to over 209 billion crowns.
Car maker Škoda Auto again won the annual contest for the best-rated 100 companies in the Czech Republic, which made both the highest sales and profits, followed by Daniel Křetínský’s energy holding EPH and the energy giant ČEZ.
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